Position: YES

When everyone is abuzz on MRT and ISKANDAR, many focus is thrown on the big player. Rather than looking afar, it is interesting to find out the new venture of this kids of the block into the utility field. The joint venture is between KUB and MASTEEL, proposing an internal rail services to service the hungry ISKANDAR and community surrounding. 

So, what's the logic behind? The utilization of steel and the needs of a common public transport, has driven MASTEEL far away from her mainstay. The company intention to diversify their earning is all about surprise. The earlier move to produce and run cancer treatment facility has indeed a scarce of idea thrown in by a steel player. Now, the idea to own the utility project, is something that caught me in thought.

Til it has been revealed by one of the opposition MP in the parliament, I believe their project has gone under-radar. First propose a year before Malaysia general election, the project is slowly mooted. From gaining pace and securing the required approval and lands, the idea seems to gain reality, if not for soon.

Shall one check the filing from BURSA, more and more scattered but concrete ideas are shaping up. Eventually, how interesting will this idea to you as investor? I believe this is a well ended idea, with feedstock growing existing business and a new stable yet promising venture. Indeed, how much value will this create, is up to your believing. 

Even scrapping the project, MASTEEL is worth a look by many. Albeit fall in a cyclical industry, MASTEEL manage to deliver positive result in all years with reasonable DY of almost 3%. Proven as the near best efficient steel player, they are indeed knowing what serve best to their monies, unlike other players.